The Law of Fundraising. Bruce R. Hopkins

58. This commentary is based on an article written by Karl E. Emerson, Director, Bureau of Charitable Organizations, Department of State of the Commonwealth of Pennsylvania.

      59 59. This analysis was prepared by Delmar R. Straecker, CFRE. His contribution is gratefully acknowledged by the authors.

      60 60. Subsequently, the president of corporate and legal affairs at a fundraising company wrote a letter to the National Association of State Charity Officials, stating, inter alia, “State government officials rob donors by knowingly diverting untold millions of dollars of contributions from their intended purposes under a cumbersome, outdated multistate licensing scheme” and “[t]hey violate clear constitutional [law] precedent, the federal Privacy Act, and even the laws they are charged to enforce as a way to censor and intimidate nonprofit organizations” (Williams, “State Fund-Raising Rules Harm Charities, Critic Says,” XX Chron. of Phil. (No. 1) 32 (Oct. 18, 2007)).

      61 61. The balance of this analysis is confined to state laws, but it is equally applicable to a system of local law compliance.

      62 62. See Chapter 7.

      63 63. See § 4.5.

      64 64. See, e.g., § 3.15.

      65 65. For the principles an organization may utilize in explanation of the reasonableness of its fundraising costs, see § 4.1.

CHAPTER THREE States' Charitable Solicitation Acts

        § 3.1 Summary

        § 3.2 Definitions (a) Charitable (b) Charitable Organization (c) Solicitation (d) Sale (e) Contribution (f) Membership (g) Professional Fundraiser (h) Professional Solicitor (i) Fundraising (j) Commercial Coventurer (k) Administrative Agency

        § 3.3 Preapproval

        § 3.4 Annual Reporting

        § 3.5 Exemptions (a) Churches (b) Other Religious Organizations (c) Educational Institutions (d) Libraries (e) Museums (f) Health Care Institutions (g) Other Health Care Provider Organizations (h) Membership Organizations (i) Small Solicitations (j) Solicitations for Specified Individuals (k) Political Organizations (l) Veterans’ Organizations (m) Named Organizations (n) Other Categories of Exempted Organizations

        § 3.6 Regulation of Professional Fundraisers

        § 3.7 Regulation of Professional Solicitors

        § 3.8 Regulation of Commercial Coventurers

        § 3.9 Limitations on Fundraising Costs

        § 3.10 Availability of Records

        § 3.11 Contracts

        § 3.12 Registered Agent Requirements

        § 3.13 Prohibited Acts

        § 3.14 Regulatory Prohibitions

        § 3.15 Disclosure Statements and Legends

        § 3.16 Reciprocal Agreements

        § 3.17 Solicitation Notice Requirements

        § 3.18 Fiduciary Relationships

        § 3.19 Powers of Attorney General

        § 3.20 Miscellaneous Provisions

        § 3.21 Sanctions